Debt consolidation loans are sometimes the only way to maintain liquidity. However, the bank will not always decide to give you funds. What conditions do you have to meet to get a consolidation loan? And what documents must be attached to the application? We present the most important information.
Check us out fast if you want payday loan consolidation
Wondering what a payday consolidation loan is? This is an intentional commitment granted to pay off payday loans. Thanks to the paydayloanconsolidation.net ideas for a payday loan consolidation, you pay one installment instead of several as before. In addition, by extending the repayment period, the bank can reduce the monthly amount you have to pay back. Often, this is the best way to maintain liquidity and not strain your home budget.
However, you must be aware that the total cost of a consolidation loan is often higher than the sum of the debts you want to pay back in this way. No wonder – the bank must earn something. However, if you are afraid that due to the worsening of your situation you are not able to pay the installments, it is better to combine them.
Documents needed for a consolidation loan
Regardless of whether you apply for a consolidation loan online or go to a branch of the selected bank, you must prepare the appropriate documents in advance. What is needed? The consolidation loan and the conditions for obtaining it are presented at www.totalmoney.pl, where all documents can be divided into 3 groups: personal, financial and concerning debt.
Of course, the first group includes your ID card, without which you will not submit an application. Financial documents are those that show the source and amount of your income. In most cases, you’ll need a work certificate of income and the type of employment relationship you have – including on this basis, the bank verifies your creditworthiness. If you are retired or receiving a pension, you will need to provide your last proof of payment.
To be able to consolidate selected loans, you must also provide the most important information about them: loan agreements, repayment schedules, proof of repayment of the last few installments, etc. Depending on the bank’s requirements, various types of documents may need to be provided here. Interestingly, some financial products are designed so that they limit formalities to a minimum and it is not necessary to prepare all this information.
A consolidation loan without creditworthiness
In the introduction, we mentioned that the bank may reject your application if you do not meet the requirements. What does it mean? And do you have a chance for this commitment if your creditworthiness is lower? It depends on what influences her.
When the reason for your deterioration is a reduction in income or the need to pay for other unforeseen accidents, banks usually tailor their offer to customers. For example, they extend the repayment period, and thus – reduce installments. Of course, this involves paying more interest, but sometimes it is the best solution.
And when do banks most often refuse? If BIK has already received information that you have problems with regular repayment of installments. Therefore, do not apply for a consolidation loan at the last minute, but as soon as you notice that monthly repayment of obligations becomes too much a burden for your home budget.